Regions Bank 2008 Annual Report Download - page 123

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The following tables present the age of gross unrealized losses and estimated fair value by investment
category for securities available for sale at December 31:
2008
Less Than Twelve Months Twelve Months or More Total
Estimated
Fair Value
Unrealized
Losses
Estimated
Fair Value
Unrealized
Losses
Estimated
Fair Value
Unrealized
Losses
(In thousands)
Federal agency securities ....... $ 3,184 $ (22) $ 1,155 $ (31) $ 4,339 $ (53)
Mortgage-backed securities ..... 1,829,992 (422,059) 660,326 (117,172) 2,490,318 (539,231)
All other securities ............ 204,035 (20,946) 137,428 (4,262) 341,463 (25,208)
$2,037,211 $(443,027) $ 798,909 $(121,465) $2,836,120 $(564,492)
2007
Less Than Twelve Months Twelve Months or More Total
Estimated
Fair Value
Unrealized
Losses
Estimated
Fair Value
Unrealized
Losses
Estimated
Fair Value
Unrealized
Losses
(In thousands)
U.S. Treasury securities ........ $ 661,273 $ (3,303) $ 9,983 $ (17) $ 671,256 $ (3,320)
Federal agency securities ....... 401 (1) 702,691 (2,088) 703,092 (2,089)
Mortgage-backed securities ..... 729,973 (2,694) 3,017,234 (37,643) 3,747,207 (40,337)
All other securities ............ 135,536 (1,524) 259,339 (2,603) 394,875 (4,127)
$1,527,183 $ (7,522) $3,989,247 $ (42,351) $5,516,430 $ (49,873)
Regions evaluates securities in a loss position for other-than-temporary impairment, considering such
factors as the length of time and the extent to which the market value has been below cost, the credit standing of
the issuer, and Regions’ ability and intent to hold the security until its market value recovers. Management does
not believe any individual unrealized loss, which was comprised of 1,065 securities and 1,021 securities as of
December 31, 2008 and 2007, respectively, represented an other-than-temporary impairment as of those dates.
The unrealized losses related primarily to the impact of lower interest rates and widening of credit and liquidity
spreads related to U.S. Treasury securities, Federal agency securities and mortgage-backed securities. During
2008 and 2007, Regions recognized a write-down of securities of approximately $28.3 million and $7.2 million,
respectively, representing other-than-temporary impairment, related primarily to equity securities and retained
interests on beneficial interests.
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